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Ordinance
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Miami, FL 33133
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File Number: 07-00562 Final Action Date:
AN ORDINANCE OF THE MIAMI CITY COMMISSION AMENDING CHAPTER 23
OF THE CODE OF THE CITY OF MIAMI, FLORIDA, AS AMENDED, ENTITLED
"HISTORIC PRESERVATION," MORE PARTICULARLY BY ADDING A NEW
ARTICLE ENTITLED "AD VALOREM TAX EXEMPTION," WHICH ESTABLISHES A
CITY OF MIAMI ("CITY") AD VALOREM TAX EXEMPTION PROCESS FOR
IMPROVEMENTS TO ARCHITECTURALLY AND HISTORICALLY SIGNIFICANT
STRUCTURES IN THE CITY; CONTAINING A REPEALER PROVISION, A
SEVERABILITY CLAUSE AND PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the citizens of Florida have amended the Florida Constitution, Article VII, Section 3(e)
to authorize counties and municipalities to allow certain tax exemptions for historic properties; and
WHEREAS, the Florida Legislature has enacted Sections 196.1997 and 196.1998, Florida Statutes
to govern the allowance of such exemptions; and
Whereas, the City Commission has deemed it necessary to establish a City of Miami ("City") ad
valorem tax exemption process for improvements to architecturally and historically significant
structures in the City; and
WHEREAS, the City's Historical and Environmental Preservation Board endorse the proposed
amendment to the Historic Preservation section of the Code of the City of Miami, Florida, as amended
("City Code"); and
WHEREAS, the amendment encourages restoration, rehabilitation and renovation of designated
historic structures in the City; and
WHEREAS, the amendment would improve the appearance of designated historic landmarks in
the City, therefore enhancing their appeal as places to live, to work or to visit;
NOW, THEREFORE, BE IT ORDAINED BY THE COMMISSION OF THE CITY OF MIAMI,
FLORIDA:
Section 1. The recitals and findings contained in the Preamble to this Ordinance are adopted by
reference and incorporated as if fully set forth in this Section.
Section 2. Chapter 23 of the City Code, entitled "Historic Preservation," is amended in the
following particulars:{1}
" Chapter 23
HISTORIC PRESERVATION
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ARTICLE I. HISTORIC PRESERVATION
* * *
ARTICLE 11. AD VALOREM TAX EXEMPTION
DIVISION 1. GENERALLY
Sec. 23-7. Short Title.
This article shall be known and may be cited as the "Historic Tax Exemption Ordinance."
Sec. 23-8. Purpose.
The provisions of this article shall create a method thatprovides the City Commission to allow tax
exemptions for the taxes levied by the City of Miami for the restoration, renovation, or rehabilitation of
historic properties.
Sec. 23-9. Definitions.
For the purposes of this article, the following words and phrases shall have the meanings respectively
ascribed to them by this section:
Assessed value. The total value of a tax parcel, excluding the value of the land, as determined by the
Miami -Dade County property appraiser, and shown on the property tax bill sent to the owner of record
by Miami -Dade County.
Board. The Historic and Environmental Preservation Board.
Contributing Property. A building, site, structure, or object that adds to the historical architectural
qualities, historic associations, or archaeological values for which a district is significant because:
u It was present during the period of significance of the district, and possessed historic integrity
reflecting its character at that time;
aol It is capable of providing important information about the period; or
It independently meets the National Register of Historic Places criteria for evaluation set forth in
36 CFR Part 60.4, incorporated by reference.
Historic Property Tax Exemption Covenant. The Historic Preservation Property Tax Exemption
Covenant is a form that complies with applicable Florida Statutes and accompanying rules, and is an
agreement made between the property owner and the city, indicating that the owner agrees to
maintain and repair the property so as to retain the architectural and historical integrity of the property
during the exemption period.
Historic property. A building, site, structure, or object that is:
j Individually listed in the National Register of Historic Places; or
ILI A contributing property in a National Register listed historic district; or
Designated as a historic property or landmark under the provisions of Chapter 23 of the Miami
City Code: or
(d) A contributing property in a historic district designated under the provisions of Chapter 23 of the
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Miami City Code.
Improvement. Any change in the condition of any eligible real property brought about by the
expenditure of money on labor or materials for the restoration, renovation, or rehabilitation of such
property. Expenditures for interior or exterior work, including construction of additions or accessory
structures, shall be included in the meaning of improvements (i.e., garage, cabana, quest cottage,
storage/utility structure) so long as the new construction is compatible with the historic character of the
building and site in terms of size, scale, mass, design and materials, and preserves the historic
relationship between a building or buildings, landscape features and open space.
National Register of Historic Places. The list of historic properties significant in American history,
architecture, archaeology, engineering and culture, maintained by the Secretary of the Interior, as
established by the National Historic Preservation Act of 1966 (Public Law 89-665; 80 STAT. 915; 16
U.S.C. 470), as amended.
Noncontributing property. A building, site, structure, or obiect that does not add to the historic
architectural qualities, historic associations, or archaeological values for which a district is significant
because:
(a) It was not present during the period of significance of the district; or
Ski Due to alterations, disturbances, additions, or other changes, it no longer possesses historic
integrity reflecting its character at that time or is incapable of yielding important information about the
period: or
(c) It does not independently meet the National Register of Historic Places criteria for evaluation.
Officer. The Historic Preservation Officer.
Renovation or rehabilitation. For historic properties or portions thereof that are of historical or
architectural significance, "renovation" or "rehabilitation" means the act or process of returning a
property to a state of utility through repair or alteration that makes possible an efficient contemporary
use, while preserving those portions or features of the property that are significant to its historical,
architectural, cultural and archaeological values. For historic properties or portions thereof that are of
archaeological significance or are severely deteriorated, "renovation" or "rehabilitation" means the act
or process of applying measures designed to sustain and protect the existing form and integrity of a
property, or reestablish the stability of an unsafe or deteriorated property while maintaining the
essential form of the property as it presently exists.
Restoration. The act or process of accurately recovering the form and details of a property and its
setting as it appeared at a particular period of time by means of the removal of later alterations or by
the replacement of missing earlier work.
Sec. 23-10. Historic tax exemption.
This exemption shall apply to one hundred (100) per cent of the assessed value of all improvements to
eligible historic properties that result from restoration, renovation or rehabilitation made on or after the
effective date of this ordinance. The exemption applies only to taxes levied by the City of Miami. The
exemption does not apply to taxes levied for the payment of bonds or to taxes authorized by a vote of
the electors pursuant to section 9(b) or Section 12, Article VII of the Florida Constitution.
Eligible Properties
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A property is qualified for an exemption under this section if at the time the exemption is granted the
property is:
(a) Individually listed in the National Register of Historic Places, pursuant to the National Historic
Preservation Act of 1966, as amended; or
(b) A contributing property within a National Register listed district; or
(c) Individually listed in the Miami Register of Historic Places, or
(d) Identified as a contributing structure within a historic district listed in the Miami Register of Historic
Places
Sec. 23-11. Completely exempt from property taxes.
If an eligible property is used for a non-profit or governmental purpose and is regularly and frequently
open for the public's visitation, use and benefit, the city may exempt one hundred 1100) per cent of the
assessed value of the property, as improved, from ad valorem taxes levied by the city provided that
the assessed value of the improvement is equal to at least fifty (50) per cent of the total assessed
value of the property as improved. This section applies only if the improvements are made by or for the
use of the then existing property owner. An eligible property is considered used for non-profit or
governmental purposes if the occupant or user of at least sixty-five (65) per cent of the usable space
of the building is an agency of the federal, state or local government or a non-profit corporation whose
articles of incorporation have been filed by the Florida Department of State in accordance with Section
617.0125, Florida Statutes. Usable space means that portion of the space within a building that is
available for assignment or rental to an occupant. A property is considered regularly and frequently
open to the public if the public has access to the property not Tess than fifty-two (52) days a year on
an equitably spaced basis, and other times by appointment. This exemption does not prohibit the
owner from charging a reasonable, non-discriminatory admission fee. If a property that qualifies for
this exemption is no longer used for non-profit or governmental purposes or is no longer regularly and
frequently open to the public or if ownership is transferred, this exemption shall no longer be effective
and the property shall, instead, be subiect to the exemption provided for by section 23-10 above.
Sec. 23-12, Term of exemption.
Any exemption granted shall remain in effect for up to ten (10) years with the effective date being
October 1, of the year that the applicant and the city have entered into the exemption covenant, and
following the Miami -Dade County Property Appraiser's formal evaluation of the completed
improvements, and their subsequent valuation. The City Commission shall have the discretion to set
a lesser term for the duration of the exemption. The exemption shall continue in force if the authority of
the city to grant exemptions changes or if ownership of the property changes, including any change
from a tax exempt entity to a tax paying entity except as set forth in section 23-10 above. In order to
retain an exemption, the historic character of the property and improvements that qualify the property
for an exemption, must be maintained in the historic state over the period for which the exemption was
granted.
DIVISION 2. APPLICATION PROCESS FOR EXEMPTION
Sec. 23-13. Forms/ Fees.
Any person, firm, or corporation which desires a tax exemption for historic properties shall, in the year
the exemption takes effect, file a completed application on the appropriate forms obtained from the
City of Miami Historic Preservation Officer. The forms shall contain all the information required by the
Division of Historical Resources, Florida Department of State, and promulgated in accordance with
Rule 1A-38, F.A.C., but may also contain additional information as determined necessary by the
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Board. Application forms and summaries of deadlines and application procedures shall be maintained
by the Officer and shall be made available to the general public upon request. A non-refundable fee of
$250.00 will be payable upon submission of the application, with the check made payable to the "City
of Miami."
Sec. 23-14. Preconstruction application (Part I).
Only expenditures made to an eligible property after the effective date of this ordinance may be
reviewed by the Officer for approval. Work that has already been completed before an application is
approved may not be considered eligible for inclusion in the tax exemption. The Board may consider
applications of non -eligible properties if the proposed work would restore the building to its original
appearance, thus making it an eligible property.
(a) Applications for the ad valorem tax exemption may be reviewed concurrently with an application
for a Special Certificate of Appropriateness; however, all additional materials, the non-refundable
application fee,, the specific forms and additional submittal requirements for the historic tax exemption
must accompany the request.
(b) The application will be made on forms approved by the Florida Department of State, and all
applicable fees shall be paid at the time the application is submitted. The application must include the
following information:
(1) The name of the property owner and the location of the historic property.
(2) A description of the real property for which an exemption is requested and the anticipated date of
commencement of such improvements.
(3) Proof to the satisfaction of the Board that the property that is to be rehabilitated or renovated is an
eligible property under this section.
(4) Proof to the satisfaction of the Board that the improvements to the property will be consistent with
the Secretary of the Interior's Standards for Rehabilitation, and any other design guidelines previously
promulgated by the Board.
Sec. 23-15. Review of Preconstruction Application by Officer.
(a) Upon receipt of the completed preconstruction application and all required materials, the Officer
shall conduct a review to determine:
(1) Whether the property for which an exemption has been requested is or is not a historic
property pursuant to Section 23-10 of this code; and
(2) Whether the proposed, in progress, or completed improvements are consistent with the
Secretary of Interior's Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings
and any other design guidelines previously promulgated by the Board; and
(3) For applications claiming a 100% exemption as a qualifying non-profit or governmental
agency, the Officer shall verify the specified conditions under Section 23-11 of this code.
(b) The Officer shall complete their review of the preconstruction application within fifteen (15) days
following receipt of the completed application and all required supporting materials.
(c4 The Officer shall submit the preconstruction application that shall contain copies of the
preconstruction application, reviews by the Officer, and the Officer's recommendation for approval,
denial, or approval with conditions to the Board.
Sec. 23-16. Project amendments.
If changes to a project are planned at any time after submission of the preconstruction application, an
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amendment sheet must be submitted for review. This amendment sheet will allow an applicant to
indicate planned changes in project improvements, giving the originally proposed treatment and the
amended work item description.
Sec. 23-17. Request for Review of Completed Work (Part II).
(a) A request for review of completed work shall be submitted by the applicant upon substantial
completion of the improvements as represented in the preconstruction application and any
amendments. The request for review must provide a comprehensive photographic description of the
completed improvements. Photographs of the completed improvements should show the same views
as the "before" photographs included in the preconstruction application. All photographs should be
numbered, dated and labeled with the property name or address, the view, and a brief description of
what is shown. The review shall also provide information on project budgets and what portion of the
budget went to historical renovations.
(b) Upon receipt of a request for review of the substantially completed work and all required
supporting materials, the Officer shall conduct a review to determine whether or not the completed
improvements are in compliance with the renovation, restoration, or rehabilitation described in the
preconstruction application, subsequent approved amendments, if any, and the Secretary of the
Interior's Standards for Rehabilitation. The Officer reserves the right to inspect the completed
improvements to verify such compliance.
Sec. 23-18. Time of completion.
An applicant must substantially complete all renovation, restoration or rehabilitation within two (2)
years following the date of approval of a preconstruction application and the approval of a Special
Certificate of Appropriateness by the Board. A preconstruction application approval shall automatically
be void in the event the applicant fails to submit a Part II request for Review of Completed Work within
-two-(2) years following the date ofapprovalof -a- preconstruction application and Special. Certificate of
Appropriateness, except that the Officer may, for good cause shown, extend such period of time not to
exceed one (1) year. In cases of extensions, the Officer shall notify the applicant of such decision in
writing, with reasons therefore.
Sec. 23-19. Completed Work Application (Part II).
Once an applicant has filed a request for review of the substantially completed work application with
the Officer, the Officer will prepare a completed work report to submit to the Board. The completed
work application will include a discussion on the project as completed and a recommendation from the
Officer to approve or deny the application. The completed work application should also include copies
of the preconstruction application, any amendments, the request for review of completed work, and
photographs of the project conditions before and after the improvements.
Sec. 23-20. Review by the Board.
The City of Miami's Historic and Environmental Preservation Board is designated to review
applications for exemptions. The Board must recommend to the City Commission that it either grant
or deny the exemption. Such reviews must be conducted in accordance with the rules adopted by the
Florida Department of State. The recommendations and the reasons, therefore, must be provided to
the applicant and to the City Commission before consideration of the application at an official
Commission meeting. The Commission shall also be furnished with a covenant executed between the
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property owner and the city, confirming their intent to maintain the qualifying improvements for the
duration of the tax exemption granted by the City Commission. The applicant shall also be advised of
his/her right to a fair hearing pursuant to Section 120.57 Florida Statutes, and procedures set forth by
the City Commission.
Sec. 23-21. Appeals.
Following the Board's denial of the preconstruction application, and the Officer's notification by mail,
the applicant shall have thirty (30) days from the date of the mailing to file an appeal of the
determination to the City Commission. The written notice of appeal shall be filed with the Hearing
Boards Department, with a copy to the Historic Preservation Officer. The appeal shall set forth
precisely the reasons or grounds for the appeal, and shall be accompanied by the applicable fee.
Sec. 23-22. Final review.
(a) The City Commission shall grant or deny the tax exemption based on the recommendations of
the board. A vote of the Commission shall be required to adopt a motion.
(b) If the final application is granted, the City Commission shall adopt a resolution granting the
historic tax exemption to the property owner. The resolution shall contain the following:
(1) The name of the owner and the street address and legal description of the historic property
that the exemption is granted to; and
(2) The period of time that the exemption shall remain in effect; and
(3) A finding that the historic property meets the requirements of this article.
(c) Upon adoption of the resolution, and following the Officer's receipt of the executed Historic
Property Tax Exemption Covenant, the Officer shall record the covenant.. along with any supporting
documents, with the deed for the property in the official records of Miami -Dade County. The applicant
will be responsible for payment of all fees associated with the recording of the documents. Following
the recording of the covenant, the Officer will transmit to the property appraiser a copy of the City
Commission resolution granting the exemption, with instructions to provide the historic tax exemption
to the applicant as provided for in the resolution. A copy of the Officer's letter of transmittal to the
property appraiser shall be furnished to the applicant.
Sec. 23-23. Covenant.
To qualify for an exemption, the property owner must enter into a covenant or agreement with the city
for the term for which the exemption is granted. The form of the covenant shall be approved by the
Florida Department of State and will require that the character of the property and the qualifying
improvements to the property be maintained during the period that the exemption is granted.
The covenant shall be binding on the current property owner, transferees, and their heirs, successors,
or assigns.
DIVISION 3. ADMINISTRATIVE PROVISIONS
Sec. 23-24. Revocation.
L The following conditions shall provide justification for removal of a property from eligibility for the
property tax exemption by the City Commission, provided under this code:
(1) The owner is in violation of the provisions of the historic preservation tax exemption covenant; or
The property has been damaged by accidental or natural causes to the extent that the historic
integrity of the features, materials, appearance, workmanship and environment, or archaeological
integrity that made the property eligible for listing in the National Register or designation under the
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provisions of Chapter 23 of the Miami City Code have been lost or so damaged that restoration is not
feasible.
) For the exemption granted for non -profits and governmental agencies, the circumstances have
changed and the property no longer meets the tests established in Section 23-11 of this code.
Lql Proceedings under this section may also be initiated following a finding by the code enforcement
board that a housing code violation has occurred. The board shall provide notice to the current owner
of record to the property and hold a hearing in the same manner as in a review of a certificate of
appropriateness as specified in section 23-5, City Code, before forwarding their recommendation to
the City Commission.
ill Upon a determination by the City Commission that the historic tax exemption is to be revoked,
the Officer shall provide written notice of the Commission's decision to the applicant and the property
owner of record, if different, as well as to the property appraiser. The notice to the applicant, or owner
of the property, if different, shall be accompanied by reasons and recommendations for changes to the
property that may result in reinstatement of the exemption.
Upon receipt of a notice of revocation, the property appraiser shall discontinue the historic tax
exemption on the property as of October 1, of the year following receipt of the notice of revocation.
fi The notice of revocation shall include a statement that a penalty equal to the total amount of
taxes that would have been due in March and each of the previous years in which the historic
preservation exemption covenant was in effect had the property not received the exemption, less the
total amount of taxes actually paid in those years, plus interest calculated as provided in Section
212.12(3), Florida Statutes, shall be imposed by the tax collector for violation of the terms, conditions,
and standards of the historic preservation exemption covenant.
Sec. 23-25. Reinstatement.
A property may be reinstated for the historic tax exemption upon satisfactory submission of evidence
-that the recommendations for changes to the property previously made by the Officer and. Board, and
which have been approved by the City Commission, have been completed. The process for
reinstatement shall be the same as the process for revocation proceedings. Upon reinstatement by the
City Commission of the exemption, the Officer shall notify the property appraiser and the historic tax
exemption shall then be reinstated for the remaining unexpired term of the initial exemption.
Sec. 23-26. Reapplication.
An applicant previously granted a historic tax exemption by the City Commission may undertake an
additional substantial improvement project during the exemption period, or following its expiration, and
may reapply for additional historic tax exemption for such subsequent work.
Sec. 23-27. Annual report.
The Officer shall prepare an annual report to the City Commission concerning the historic preservation
tax exemption program. The report shall be filed at least thirty (30) days before the Commission_
adopts a budget for the following fiscal year, and shall summarize activities of the Officer and the
Board related to the historic tax exemption program during the previous fiscal year. The information
contained in the annual report shall include, but not be limited to, the following:
La). A list of the properties that preconstruction applications and completed work applications were
made for during the preceding year;
(b) An explanation of the disposition of each application;
Lql The total exempted amount for each completed project during the preceding year;
The total number of properties currently participating in the historic tax exemption program as
of the end of the previous Year;
The total expenditure on all improvement projects currently participating in the program; and
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fl Any other information requested by the Commission or considered significant by the Officer.
Sec. 23-29. Judicial review.
Judicial review of decisions made by the board or the City Commission shall be by certiorari in
accordance with Florida Rules of Appellate Procedure.
Section 3. All Ordinances or parts of Ordinances that are inconsistent or in conflict with the
provisions of this Ordinance are repealed.
Section 4. If any section, part of section, paragraph, clause, phrase or word of this Ordinance is
declared invalid, the remaining provisions of this Ordinance shall not be affected.
Section 5. This Ordinance shall become effective immediately upon its adoption and signature of
the Mayor.{2}
APPROVED AS TO FORM AND CORRECTNESS/
•-"jGE L. FERNANDE
CITY ATTORNEY
Footnotes:
{1} Words/and or figures stricken through shall be deleted. Underscored words and/or figures shall
be added. The remaining provisions are now in effect and remain unchanged. Asterisks indicate
omitted and unchanged material.
{2} This Ordinance shall become effective as specified herein unless vetoed by the Mayor within ten
days from the date it was passed and adopted. If the Mayor vetoes this Ordinance, it shall become
effective immediately upon override of the veto by the City Commission or upon the effective date
stated herein, whichever is later.
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